New Delhi:
Environment Minister Jayanthi Natarajan has written to the Prime Minister, strongly objecting to Finance Minister P Chidambaram's next reform-oriented move - setting up a National Investment Board or NIB, a three-minister panel to fast-track mega infrastructure projects.
The NIB would ensure that clearances required for major projects would be granted by the relevant ministries without unnecessary delays; the blueprint for the NIB, which was discussed at the last cabinet meeting a few weeks ago but has not yet been cleared, gives the board the power to over-rule other ministries.
NDTV has accessed Ms Natarajan's letter to the PM, in which she asks him to intervene, and writes, "This concept is unacceptable. The NIB has no constitutional authority to decide on the failure of any minister... when the Minister of a Ministry takes a decision, there is absolutely no justification for an NIB to assume his/her authority. Nor will the NIB have the competence to do so." The letter adds in appeal, "I request you to kindly intervene and refer this proposal to various levels of government for proper examination."
(Read the full letter here)A Cabinet note prepared by the Finance Ministry says the NIB is necessary because several big-ticket projects have been held up due to inordinate delays in getting approvals from different ministries. It notes that it can take several years to get all clearances and important targets have not been met.
It envisages that if clearances are not given by the concerned ministries within a specified time-frame, the projects should be sent to the NIB, which would be headed by the Prime Minister and would have as members the Finance Minister and Law Minister. The board, it is proposed, will make the final call on whether the project can proceed. Once the NIB has okayed a project, no ministry will have the power to raise objections.
That has not gone down well. "These proposed changes would have far reaching consequences on the way ministries are run, governance carries out, and responsibility to the Legislature by the Executive is discharged. For example, if any decision of the Minister for Environment is overruled by the NIB, who will answer to this in Parliament?" Ms Natarajan has asked in her letter.
There are reports that Ms Natarajan is not the only minister upset at Mr Chidambaram's plans. Minister for Tribal Affairs KC Deo reportedly too has expressed concerns over the proposed board and is expected to take it up with the PM. Talking to NDTV about the NIB, Mr Deo said he will not allow the interests of the tribals to be bypassed. "However important a project may be, it cannot be more important than the lives of the people. We cannot ignore the interest of the tribals and the forest dwellers," he said.
Mr Chidambaram has reportedly promised industry leaders that the board, which will ensure that infrastructure projects above Rs. 1,000 crore are not delayed, will be set up soon. The NIB plan is part of the government's aggressive reforms agenda to stimulate economic growth and seeks to address a longstanding industry complaint that ministerial clearances delay crucial mega projects.
Ms Natarajan has pointed out that the Cabinet note on the NIB gives industrialists the right to appeal against decisions of her environment ministry, but "does not contemplate that ordinary citizens, NGOs may be aggrieved and should also have right of appeal." Several big projects have seen a tussle over environmental concerns between civil society activists and industry and the latter has been pointed about the lack of quick green clearances.
"It is against the spirit of the Environment Protection Act to allow an Investment Board or the Finance Ministry to overrule or decide upon environmental concerns. Mandate of Ministry of Environment is to provide a service to the nation and the people of India, to ensure that environmental integrity is protected. This cannot be sacrificed at the altar of large investment," Ms Natarajan has said.
This is how it is proposed that the NIB will function: The board will be supported by a secretariat located either in the Prime Minister's Office or the Department of Economic Affairs in the Ministry of Finance. This secretariat will identify the key mega projects that need continuous monitoring - to begin with, in sectors like roads, mining (especially coal), power, petroleum, ports and railways. Where the secretariat finds delays, it shall bring the matter to the attention of the NIB, which will then prescribe by when that project should be cleared. It will set the time limits for decision-making in consultation with ministries. If decision is not taken by the time stipulated, the authority of the ministry will stand to the board, which will take a decision. And this will be binding on all ministries.